Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with Cabinet colleagues on the cost of the proposed lease of the military base at Diego Garcia following the UK and Mauritius joint statement, published on 3 October 2024; and what provisions she has made in the Budget and Spending Review for these costs.

The Chief Secretary to the Treasury has engaged in discussions and reached an agreement with Cabinet colleagues on the financial elements of the proposed lease of the military base on Diego Garcia, as part of the UK-Mauritius agreement announced on 3 October 2024.

The treaty is still being finalised and will require ratification before coming into force. No payments will be made until the treaty is legally binding.

This agreement secures the future of Diego Garcia as a vital part of the UK’s global defence network, reinforcing regional and global security. It also supports a new era of economic partnership with Mauritius and demonstrates the UK’s commitment to the welfare of Chagossian communities. The financial package includes an annual payment, an economic partnership programme, and a Trust Fund to benefit Chagossians.

As is standard practice, the UK does not disclose the specific costs of payments for military bases to ensure their secure operation. Any financial obligations arising from this agreement will be managed responsibly within the government’s fiscal framework.